Ecuador

Corporate - Branch income

Last reviewed - 15 July 2020

Distributed or retained branch profits are taxed at a rate between 22% and 28% (see the Taxes on corporate income section). Further taxes are payable when profits are remitted to headquarters abroad. Re-invested profits are levied at a 12% or 18% CIT rate. Companies must increase their share capital within the following fiscal year to be beneficiaries of the CIT rate reduction.

Countries and territories considered as tax havens by tax authorities

Besides the tax haven list published by the tax authorities shown below, ‘low-tax jurisdictions’ shall be subject to the same tax treatment. ‘Low-tax jurisdictions’ are defined as a territory where the effective rate of income tax or taxes of an identical or similar nature is less than 60% of the applicable rate in Ecuador. Additional considerations are also taken by the tax authorities for determination of low-tax jurisdictions/preferential tax regimes.

Albania Cook Islands Maldives Saint Vincent and the Grenadines
American Samoa Curaçao Malta San Marino
Andorra Cyprus Marshall Islands Santa Elena
Angola Djibouti Mauritius Serbia
Anguilla Dominica, Commonwealth of Monaco Seychelles
Antigua and Barbuda French Polynesia Montenegro Solomon Islands
Aruba Gibraltar Montserrat (UK) Sri Lanka
Ascension Island Granada Myanmar Svalbard Islands
Azores Islands Greenland Nauru Swaziland
Bahamas Guam Nigeria Tokelau
Bahrain Guyana Niue Tonga
Barbados Hong Kong Norfolk Islands Trieste (Italy)
Belize Isle of Man Oman Trinidad and Tobago
Bermuda Jordan Ostrava Tristan Da Cunha
Bonaire, Saba, and St. Eustatius Kiribati Palau Tunisia
Brunei Darussalam Kuwait Panama Turks and Caicos Islands
Bulgaria Labuan Pitcairn Tuvalu
Cabo Verde Liberia Puerto Rico United Arab Emirates
Campione D´italia Liechtenstein Qeshm Islands Vanuatu
Cayman Islands Luxembourg Saint Kitts and Nevis Islands Virgin Islands (British)
Channel Islands (Guernsey, Jersey, Alderney, Greater Sark, Herm, Little Sark, Brechou, Jethou, Lihou) Macao Saint Lucia Virgin Islands of the United States
Christmas Islands Macedonia Saint Martin Western Samoa
Cocos (Keeling) Islands Madeira (Portugal) Saint Pierre and Miquelon Yemen

Certain tax regimes from Costa Rica, the Netherlands, New Zealand, Ireland, Estonia, Serbia, Montenegro, USA and the United Kingdom may be considered preferential tax regimes.